TRANSCRIPT OF
THE HON PETER COSTELLO MP
Treasurer

Doorstop Interview

Wednesday, 17 September 2003

12.30 pm

Finance Minister’s office, Palestinian Authority

Ramallah

SUBJECTS: Meetings with the Palestinian Authority, Road Map to Peace,

tax cuts

JOURNALIST:

This is your first time in the Palestinian territories. What are your impressions

so far?

TREASURER:

Well, we’ve had very useful discussions today with Abu Ala, the Prime

Minister of the Palestinian Authority. I’ve met the Foreign Minister,

I’ve met the Finance Minister. Obviously discussions have been dominated

by the security situation and it’s going to take a lot of work to get

the security situation back on track. But it’s been a useful visit for

me, I think, to talk about some of the issues that are important here, to see

the situation, to visit some of the Australian aid projects, which I also had

the opportunity to do, and to hear first hand some of the problems that people

are facing.

JOURNALIST:

Have you had a chance to see some of the issues? You spoke yesterday about

the Israeli’s concerns about terror attacks but we’re staring right

opposite us at a Jewish settlement and you obviously came through some checkpoints,

although your way was probably cleared. Have you had a chance to see some of

the problems that ordinary Palestinians are facing, which creates a lot of frustration

amongst the population?

TREASURER:

Well, obviously part of the visit is to hear first hand from the various Ministers

of the Palestinian Authority the problems they’re facing. And obviously

they have put their view strongly to me in the course of discussions. But the

reality is that until the violence can stop, and until confidence can be built,

it’s hard to think how the peace process will move forward. And obviously

there have got to be confidence-building measures that are put in place if the

Road Map is to go forward. Nobody that I’ve spoken to has a better idea

than the Road Map. That is, that the Road Map is still the best chance to take

the process forward and getting that back on track and reigning in the violence

seems to be the best way of proceeding with that.

JOURNALIST:

In your view, have you worked out for yourself who actually initiates the violence?

TREASURER:

Well look, obviously there are long-term disagreements between various parties

to the process. But where you have a situation where suicide bombers can indiscriminately

target civilians, where you have a situation where people are under threat,

obviously this strikes at the heart of a country and its security. And it’s

the indiscriminate nature of terrorism that I think all of the civilised world

would say is something that has to come to an end. And I know that amongst a

lot of the people on both sides, they see militants who are perhaps trying to

de-rail peace with that indiscriminate terror. But it’s the indiscriminate

nature of terror, that it strikes deliberately at civilians and people who are

not engaged, that is the problem.

JOURNALIST:

What about killings on the Israeli side of Palestinian civilians who get caught

in the crossfire, so to speak?

TREASURER:

Well, obviously in a security situation you have response and counter-response.

But I keep coming back to this point. The ending of terror, the building of

confidence, the Road Map to Peace – that still represents the best hope.

JOURNALIST:

When you were talking with the Palestinian politicians, did Yasser Arafat’s

name come up?

TREASURER:

Oh, of course, in the sense that he is the head of the Palestinian Authority.

Of course it came up in that sense. And he’s obviously very influential

in the Palestinian administration.

JOURNALIST:

Did they make any requests that you should put to Israel regarding his fate?

TREASURER:

No. I haven’t had any requests put to me in relation to Mr Arafat.

JOURNALIST:

Is it true you’re going to deliver a $3 billion surplus and that there

will be tax cuts shortly?

TREASURER:

Well, I’m rather amused to see some of the stories that are coming out

of Australia which, as far as I can tell, are based on nothing except for wishful

thinking. But far be it from me to crib journalists’ copy with the facts.